Inflation might spark upheaval

Inflation does not mean a higher price level; rather it is the continuous or persistent increase in the price level which is regarded as inflationary. Recently, national dailies have begun writing on price hikes of essential goods. In our country, once the price levels increase, they never go down. And now that Bangladesh is an open market economy, price hike might worsen.

The commerce minister pegged Tk. 18 per kg of onion, but failed due to the open market dynamic, as the minister himself confessed. Due to this price hike, inflation creeps in and the purchasing power of the middle, upper middle and lower classes go out of control. Their standard of living thus erodes.

However, when people's purchasing power goes down and inflation hits home, real wage falls and the low-income people are pushed more toward adopting corrupt means to subsist.

The government should adjust the inflation rate with the people's income every year, which is called 'inflation-indexed waging.' If not, the nation will be in the throes of an upheaval sooner.